The Review

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Thursday, March 14, 2013

HB 3411
known as Cross-Nekritz - the latest iteration of Nekritz-Biss - paints
over Illinois’ pension crisis with more of the same broken policies that
have pushed government retirement systems to the edge of collapse. This
bill:

Perpetuates unstable, unpredictable and unmanageable defined benefit systems
– The key driver of Illinois’ pension crisis is the state’s defined
benefit system, which is inherently dangerous because there is no way to
predict how much the systems will actually cost each year. There is no
crystal ball to accurately predict movements in the economy, the state’s
tax base or retiree longevity – mistakes in any of these measurements
can bump up future payments and are the primary cause of underfunding.
HB 3411 perpetuates a defined benefit pension for new and current
employees.

Sets up a new pension payment ramp: Edgar 2.0
– HB 3411 relies on a dangerous repayment ramp – pushing the bulk of
pension payments onto the backs of our children and grandchildren so the
state can make smaller contributions today. Former Gov. Jim Edgar used a
similar approach in 1996. The ramp isn’t working today and won’t work
going forward.

Sacrifices nongovernment workers with a pension funding guarantee
– HB 3411’s funding guarantee protects one group of citizens –
government workers – at the expense of another – taxpayers. That’s
unfair and immoral. It’s not right to shield one group of people from
the consequences of misguided government interventions that cause
economic downturns. Further, working class and poor taxpayers shouldn’t
have to worry about backstopping government’s unstable retirement system
while trying to fund their own retirements.

Comments

HB 3411
known as Cross-Nekritz - the latest iteration of Nekritz-Biss - paints
over Illinois’ pension crisis with more of the same broken policies that
have pushed government retirement systems to the edge of collapse. This
bill:

Perpetuates unstable, unpredictable and unmanageable defined benefit systems
– The key driver of Illinois’ pension crisis is the state’s defined
benefit system, which is inherently dangerous because there is no way to
predict how much the systems will actually cost each year. There is no
crystal ball to accurately predict movements in the economy, the state’s
tax base or retiree longevity – mistakes in any of these measurements
can bump up future payments and are the primary cause of underfunding.
HB 3411 perpetuates a defined benefit pension for new and current
employees.

Sets up a new pension payment ramp: Edgar 2.0
– HB 3411 relies on a dangerous repayment ramp – pushing the bulk of
pension payments onto the backs of our children and grandchildren so the
state can make smaller contributions today. Former Gov. Jim Edgar used a
similar approach in 1996. The ramp isn’t working today and won’t work
going forward.

Sacrifices nongovernment workers with a pension funding guarantee
– HB 3411’s funding guarantee protects one group of citizens –
government workers – at the expense of another – taxpayers. That’s
unfair and immoral. It’s not right to shield one group of people from
the consequences of misguided government interventions that cause
economic downturns. Further, working class and poor taxpayers shouldn’t
have to worry about backstopping government’s unstable retirement system
while trying to fund their own retirements.